Lundin Mining begins all-cash offer to buy Nevsun

Reuters Staff

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July 26 (Reuters) - Canada’s Lundin Mining Corp said on Thursday that it formally commenced an offer to acquire Nevsun Resources Ltd for C$4.75 per share in cash, valuing the base metals miner at around C$1.44 billion ($1.10 billion).

Earlier this month, Nevsun had said that rival Lundin’s offer of C$4.75 undervalues the company and its assets.

Lundin Mining said it intends to mail the offer to Nevsun’s security holders.

Lundin has been trying to acquire Nevsun’s large, high-grade Timok copper project in Serbia, but had no appetite for Nevsun’s Eritrean mine, so partnered with tiny mine developer Euro Sun Mining for its last buyout proposal for Nevsun. ($1 = 1.3038 Canadian dollars) (Reporting by Rishika Chatterjee in Bengaluru; Editing by Vyas Mohan)